Fonterra's strategy has to start delivering or its market share will shrink further, says Federated Farmers Otago dairy chairman Stephen Crawford.
The results of small Waikato-based dairy co-operative Tatua and West Coast-based Westland Milk Products might well "far exceed" Fonterra's, so it could eventually have to front up and stop blaming volatility, which was experienced by all players in the market, Crawford said.
"Fonterra's six-monthly results were disappointing, to say the least. The share/unit price has tumbled accordingly to below its float price, the market has spoken and confidence in New Zealand's No 1 rock star business has dwindled," he said.
The dividend was poor and Fonterra's strategy needed to start delivering or its 86 per cent market share would shrink further. It was 96 per cent when the co-operative was formed in 2001, he said.
Outgoing Federated Farmers Otago president Stephen Korteweg, who is also a dairy farmer, said dairy farming had "definitely seen highs and lows" over the past 12 months.